Feb. 17, 2025

The Profit Growth Formula: Turning Every Dollar of Revenue into Maximum Bottom Line Impact

The Profit Growth Formula: Turning Every Dollar of Revenue into Maximum Bottom Line Impact

In this episode, we'll reveal how business owners can dramatically improve their profit margins by focusing on three key areas: strategic pricing, operational leverage, and what we call "profit leak prevention." We'll show how small adjustments in...

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Season 1

In this episode, we'll reveal how business owners can dramatically improve their profit margins by focusing on three key areas: strategic pricing, operational leverage, and what we call "profit leak prevention." We'll show how small adjustments in these areas can create massive impacts on bottom-line results.

Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions expressed in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W four CY

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Radio or its employees are affiliates. Any questions or comments

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should be directed to those show hosts. Thank you for

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choosing W FOURCY Radio.

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Welcome to Powerful Business Strategies, where you will find out

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that everything you have ever learned about growing your business

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is wrong. Finally, a show where you'll learn the right

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way to grow your business by learning business and financial

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strategies that your competition isn't doing. And now here is

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your host. President of NeXTSTEP CFO Michael Barbarita, and joining

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Michael for today's show as an executive moderator is Chooky Obio.

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The Welcome to Powerful Business Strategies and the reason why

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you don't hear that energize more energized voice of Chucky

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Obio welcoming you to the show is because Chucky's wife

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and Chukey recently welcomed their first baby, Chelsea. A Day's

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a oh Bio to the world. So congratulations to Chukey

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and his wife. And Chukey will be on leave for

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a little while so in the meantime, Monument is Michael

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bober Rita, President of Next Step CFO and next Step

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CFO is a fractional CFO and strategic implementation firm. Business

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owners hire us the double and triple their profit through

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implementing business and financial strategies that their competition isn't doing.

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Our vision is to ensure that overwhelmed business owners achieve

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the time, freedom, and consistent profits that build a legacy

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and the life that they desire. Our mission is dedicated

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to guiding small business owners to leveraging their time, exploding

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their profits, and building a meaningful legacy. The show Powerful

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Business Strategies and our book of the same name is

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a step toward accomplishing that vision and mission, and Chucky

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and I are both affiliated with a number of different organizations.

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Jukie currently serves as the managing director for business development

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for Better Price, a global business focused law firm. In

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addition to that, Chucky and I collaborate to moderate business

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round cables around the country and around the world and

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document those insights as part of our book Powerful Business Strategies.

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But please note that the views expressed on this show

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are our personal views based on our own successful experiences.

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So here's something that i'd like to share that I

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announced before actually announced it the last few weeks. And

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if you have a business problem that you would like

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us to answer, or a question or a strategy that

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you'd like to ask us about, please email us at

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ask at NEXTSTEPCFO dot net. Now it doesn't matter what

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the business problem is or what the question is, will

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answer it for you. But there's a couple of things

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that we asked. Number one, please state whether it is

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something we can answer on the air or if it's confidential.

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Of course, if it's confidential, we won't put it on

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the air. Number two, please provide your phone number because

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business problems can be complex and we might need more

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context or clarity to your question. That email address again

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is ask at NeXTSTEP CFO dot net. That's ask at

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nextstepsfo dot net. I also want to point that we've

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had a couple of people requesting asking questions, but they

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all requested confidentiality, which of course, we will always honor you. Know,

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in my years of working with business owners, I've noticed

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something remarkable that the most successful ones share a common trait.

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They're eternal students. They never stop learning, they never stop growing,

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and they never stop saying I know enough. So think

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about this. Every major breakthrough in your business journey probably

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came from learning something new, a new strategy, a new perspective,

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a new way of thinking. And those moments when you

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say aha, now I see it differently, those are the

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moments that change your business now. I remember working with

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a business owner who was ready to give up. He'd

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been doing things the same way for fifteen years. His

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business was just stagged it. His enthusiasm was gone. But

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then he made a crucial decision. He decided to become

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a student again. He started reading, attending workshops, seeking out

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new perspectives, talking with me more. Within six months, his

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business was growing again, but more importantly, his passion had returned.

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Here's what I want you to understand that the most

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dangerous words in business aren't I failed there, I know enough.

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The moment you stop learning is the moment your business

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starts dying. Every business is evolving, every market is changing.

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And every day brings new opportunities to those who are

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ready to see them. But here's the beautiful thing. You

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don't have to make dramatic changes to keep learning, not

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small little tweaks. Read one article a day about your industry,

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Listen to one podcast on your commute, have one conversation

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a week with someone who thinks differently than you do.

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These small investments in yourself they compound over time, just

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like interest in a bank account. Remember, your business can

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only grow as much as you do. Every minute you

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spend learning is an investment in your company's future. The

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challenges are facing today can be solved with knowledge that

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you don't have yet. So stay curious, stay hungry, and

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stay hungry for knowledge, and never st being a student

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of your craft. So every business owner knows the feeling

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you know. You're looking at your profit and loss statement seeing,

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maybe seeing some healthy revenue numbers, but wondering why there

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isn't more profit to show for all your hard work.

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You're not alone. I've helped hundreds of business owners transform

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their revenue into real bottom line profit, and I can

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tell you this. The gap between your current profits and

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your potential isn't about working harder. It's about working smarter,

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and today I'm going to show you exactly how to

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turn more of every dollar that you learn into profit

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that you can actually keep, because it's not about not

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just about making money or generating revenue, it's about keeping

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the money that you make. So today we're going to

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take into a deep dive into something that every business

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owner needs to understand, the profit growth formula, turning every

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dollar of revenue into maximum bottom line impact. You know,

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I recently worked with a business owner who was doing

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about three million dollars in annual revenue but only keeping

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about one hundred and fifty thousand improfit. And he was frustrated,

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and he was exhausted, and he couldn't figure out why

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he was working so hard for such a small return.

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Sound familiar. Well, within six months of implementing what I'm

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about to share with you today, or some of the

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things that I'm about to share with you today, his

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profit increased a four hundred fifty thousand without increasing his

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revenue by a single dollar. Today, I'm going to show

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you exactly how he did it, and more importantly, how

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you can do it too. Oh. I got a question

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from Melissa, said he asked Michael, why do you think

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so many businesses struggle with profit even when they have

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good revenue. Well, it's what I call revenue hypnosis. Business

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owners get hypnotized by top line growth and lose sight

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of what really matters, which is by them nonprofit, and

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they're so focused on making the sale they forget to

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make sure they're keeping enough of what they earn. So

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let me give you a quick example. I worked with

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a construction company that was celebrating celebrating landing a five

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hundred thousand dollars contract, their biggest ever. It's great, but

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when we analyze the numbers, we discovered that they would

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actually lose money on the job because they were focused

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on the revenue side and they forgot about focusing on profit.

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So today we're going to break down three major areas

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where profit hides in plain sight. One is strategic pricing,

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the other is operational leverage, and the third is profit

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leak prevention. More importantly, I'm going to show you exactly

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how to capture that profit without having to work harder

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or taking on more stress, which is something I know

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we business owners always take on. And the best part,

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these strategies don't require that you get more customers or

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increase your sales. They simply require you to be smarter

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about the money that you already are making, and by

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the end of the today's show, you'll have a clear

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roadmap for turning more of your revenue into actual profit.

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Another question, can any business implement these strategies? Well? Absolutely,

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I've used these exact strategies with retailers, manufacturing, service businesses,

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contractor you name it, and the principles work across any

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industry because they're based on fundamental business math, not specific

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industry tactics. So let me share something. In my experience

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working with hundreds of businesses, I found that most companies

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are leaving between thirty percent and fifty percent of their

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potential profit on the table, not because they're doing anything wrong,

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because they're not looking in the right places for profit opportunity.

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So think about it. If you're making one hundred thousand profit,

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you might have another thirty to fifty thousand available by

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implementing these strategies. And that's without getting a single new

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customer or working a single extra hour. So let me

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dive into the first major area of profit growth that

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I talked about, strategic pricing most businesses approach pricing completely backwards.

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They look at their costs at a markup and hope

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it's enough. That's not pricing. That's not a pricing strategy.

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That's called pricing surrender. So let me share a story

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that illuminates this. A commercial landscaping company that was pricing

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their services based on what they thought the market would bear,

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and they were getting plenty of business, but their profit

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modules would raise it thin and then how they're making

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any money? And when they analyzed their pricing, they discovered

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that they had categorized all this services into three tiers

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basic basic services, premium services, and deluxe services. But when

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they looked at actual profit margins, some of their basic

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services were more profitable than their deluxe ones, and they

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were literally pushing customers put less profitable services. And so

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they implemented what they called profit first pricing. So instead

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of starting with costs, they started with target gross profit margins.

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They analyzed every service that they offered based on three factors,

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the actual cost of delivered, the value it provided, the

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value it provided to the customer, and the operational complexity involved. Now,

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this analysis revealed that their snow removal service, which they

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saw as a basic offering actually provided enormous value to

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their commercial clients. Why, because snow removal was critical for

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liability and business continuity. They reposition this service and increased

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prices by forty percent, but not a single customer complained

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because the value was obvious. This is what business owners

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are constantly afraid of. They're constantly afraid that, you know,

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they're gonna they're gonna lose business to a competitor when

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they increase their prices. But if you if you increase

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your prices strategically, like in this particular example with the

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landscaping company, that is when a customers hardly noticed, and

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especially if you add more value to your product the

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service that has very little cost to it, and so

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just adding a little things, like when I was in

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the frozen cookie dough business, I added a free convection

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of it with every opening order, and I knew the

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value of a customer, so I knew that once my

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customer tried the product, I knew I could expect probably

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five to ten thousand dollars in additional orders because that's

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what I was averaging, and so it was easy to

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give away a two hundred dollars convection of and with

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a fifty dollars opening order. Didn't make money on the

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opening order, but I made money over the long term

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with the long term valueable customer. And you always should

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know your long term value of a customer. So back

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to that landscaping landscaping company, what they also discovered is

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that some of their premium services like Intricate landscape design

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were actually eating into their profits because of the time

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and revisions involved. Instead of dropping these services, they restructured them.

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They created a clear scope of work that included two

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revisions with additional revisions at an extra charge. And the

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result was their overall gross profit manage and increased from

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eight percent to twenty three percent within four months. And

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here's the key. They didn't lose any customers. They just

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started charging appropriately for the value that they were delivering.

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For the value, that's the key word, for the value

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that they were delivering. You increase the value of your

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product or service, you could demand more money. So let

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me share another powerful pricing strategy. I call it the

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value based packaging. And most businesses give away valuable add

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ons because they're afraid to charge for them. But when

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you package your services, products or services strategically, customers actually

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prefer to pay for the complete solution. So there's an

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example of an IT service provider that I worked with

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who was including after hours support in all their contracts

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because they thought they had to compete on service. Well,

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we analyzed their support support logs and found that only

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twenty percent of their clients regularly used after hours support,

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but they were essentially giving it a way to everyone.

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We structured their pricing into three tiers, Standard, which was

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eight am to five pm, support, Premium which is seven

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am to seven pm, and Enterprise, which is twenty four

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to seven And so here's what happened. Sixty percent of

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their clients chose Premium that was seven am to seven pm,

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fifteen percent shows enterprise, and twenty five percent stayed with standard.

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Their average contract value increased by thirty four percent, and

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their gross margins approved by forty five percent. Here's another

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question from a listener. But so the question is, well,

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what about businesses that are in highly competitive markets. Won't

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raising prices drive away those customers? Well, this is I

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just kind of just went through that. But this is

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where most businesses get it wrong. They think they're in

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a price sensitive market, But what they're actually in is

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a value communication market, a value communication problem. So let

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me explain with another example. So, a commercial cleaning company

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was stuck in a brutal price war. Just imagine there's

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a million of those. Every time they tried to raise prices,

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competitors would undercut them. So they took a different approach.

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They analyzed their actual costs and identified which services were

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truly profitable and which ones weren't. And they discovered that

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their deep cleaning services, which they did quarterly for most clients,

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were highly profitable and while their daily maintenance cleaning was

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baily breaking even. Instead of raising prices across the board,

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they created a new pricing model that incentivized clients to

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commit to quarterly deep cleaning by offering a discount on

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daily mat on the daily maintenance that they did. So

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this accomplished two things. First, it increased their overall profitability

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because clients were using more of their high margin services.

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And second, it made it harder for competitors to copy

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because they couldn't just match price point, they had to

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match an entire pricing structure. You know, that's another thing.

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When you bundle things together and package things together it's

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more difficult for competitors to match you, So if you're

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bundling products and services together, much more difficult. When I

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was in the ski business and I packaged clothing to

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match the most popular ski designs and ski graphics, no

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one could really copy it because I had different types

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of clothing in the different packages, so it was real

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difficult to copy, and some of them didn't carry the

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brands that we did. So let me share one more

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powerful pricing strategy that transformed a client's business. I call

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it solution solution based pricing, and it's particularly effective in

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service businesses. So I worked with an HVAC company that

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was pricing like everyone else by the hour plus parts,

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and they were getting plenty of work but struggling with profitability.

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And when we analyzed their business, we discovered something really

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interesting about their emergency service calls. Their customer didn't care

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about hourly rates in an emergency call. They came about

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getting their ec working again quickly or whatever or whatever

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was broken. So we completely restructured their pricing so instead

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of charging by the hour, they created fixed price solutions

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based on the problem type, and they guaranteed to diagnose

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and fix specific problems for a set price, regardless of

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how long it took. For example, instead of saying we

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charge one hundred and fifty dollars an hour, they'd say,

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we'll fix your AC today for three hundred and ninety

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seven dollars guarantee. Their conversion rate on service calls increased

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by forty percent because customers loved the certainty. Their gross

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profit modges approved by thirty five percent because they could

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now be rewarded for efficiency rather than time spent. But

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here's something interesting. Complaints about pricing dropped almost to zero,

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and when you give people certainty, they're often willing to

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pay more for it. The same principle works in any

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industry where customers are more concerned with outcomes than process

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and price. They're more concerned with outcomes. So here's a

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couple of questions from our listeners. First question, so how

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can a business owner know if they're charging enough for

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their products or services? Well, I use what I call

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the value to price ratio analysis. You'll look at three

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most profitable customers and ask these questions. Number one, what

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problems do we solve for you? Two? What would happen

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if you couldn't use our service? Anymore. And their answer

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is reveal real value that you provide. So uh. For example,

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I worked with an IT company that was charging one

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hundred twenty five dollars an hour for support and when

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we and when we asked their clients these questions, we

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discovered their service was preventing an average of five thousand

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dollars in loss productivity per month. They were drastically on

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the charging for the value that they delivered. And the

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key is to quantify your value in terms that mattered

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to your customer. Don't focus on what it costs you

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to provide the services. Focus on what it's worth to

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them to have their problem solved. Boy, that's a big

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that's big what I just said there. Another question from

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the audience is what's the biggest pricing mistake that you

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see businesses make. Well, the biggest mistake is what I

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call comp competitor based pricing. Businesses look at what their

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competitors charge and in charge a little less, thinking that's

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how good they're going to win business. It's just a

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race to the bottom. Nobody wins that. Here's why your

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competitors probably don't know their numbers either, and there's probably

321
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struggling with profitability like you are. Well, when you copy

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their pricing, you're copying their problems. Instead, you need to

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base your pricing on your specific operation, your specific cost,

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and more importantly, as I've been saying, your specific value

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proposition to your customers. So before I continue this discussion,

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we're going to take a ninety second break. Hey, their

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business owners, let me ask you something. Are you tied

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00:21:35.200 --> 00:21:39.079
of blending in with your competitors, frustrated with slow growth

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00:21:39.119 --> 00:21:40.119
and slim margins?

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00:21:40.400 --> 00:21:41.799
Well, I've got news for you.

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00:21:42.480 --> 00:21:46.000
Everything you've ever learned about growing your business is wrong.

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00:21:46.880 --> 00:21:47.519
Don't worry.

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00:21:47.960 --> 00:21:49.880
I'm here to let you in on a secret weapon,

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00:21:50.319 --> 00:21:53.880
your position of market dominance. It's what sets you apart,

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00:21:54.039 --> 00:21:57.839
makes you irreplaceable, and has customers lining up at your door.

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00:21:58.839 --> 00:22:01.359
My name is Michael Barberie from Next Step CFO.

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00:22:02.400 --> 00:22:05.599
I know what you're thinking. Sounds great, Michael, How do

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00:22:05.680 --> 00:22:09.440
I find my position of market dominance? Well, that's exactly

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00:22:09.440 --> 00:22:13.240
why we've created our game changing implementation program called Next

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00:22:13.240 --> 00:22:16.759
Step to Market Dominance. In just ninety days, we'll guide

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00:22:16.799 --> 00:22:19.240
you step by step to a position of market dominance

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00:22:19.519 --> 00:22:23.279
by uncovering your unique strengths that competitors can't touch by

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00:22:23.319 --> 00:22:26.599
crafting a message that resonates deeply with your ideal customer.

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00:22:26.920 --> 00:22:29.559
By building a strategy that turns you into the go

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00:22:29.640 --> 00:22:32.599
to expert in your field. Now this is in theory.

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00:22:33.240 --> 00:22:36.200
These are battle tested strategies that have helped businesses like

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00:22:36.240 --> 00:22:40.680
you as double, triple, and quadruple their revenue. Don't let

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00:22:40.759 --> 00:22:43.920
another quarter go by struggling to standout. It's time to

349
00:22:44.000 --> 00:22:49.240
dominate your market. Period. Go to NEXTSTEPCFO dot net forward

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00:22:49.279 --> 00:22:52.720
slash contact. Fill out the form and in the message

351
00:22:52.720 --> 00:22:56.759
section put the word dominate or call us at seven

352
00:22:56.799 --> 00:23:00.400
eighty one three two six three eight two two. That's

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00:23:00.519 --> 00:23:04.160
next step CFO dot net Forward slash Contact or call

354
00:23:04.240 --> 00:23:07.519
us at seven eight one three two six three eight

355
00:23:07.559 --> 00:23:12.319
two two. Welcome back. And remember, if you are driving,

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00:23:12.480 --> 00:23:15.799
you can always listen to our replays at Powerful Business

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Strategies dot com. That's Powerful Business Strategies dot com. Now

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let's talk about the second major area of profit growth,

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what we call operational leverage. And this is about making

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your operations more profitable without necessarily making them bigger. See,

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most businesses try to grow profits by getting bigger, moret

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more sales, more staff, or equipment, but often the faster,

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fastest path to higher profits is getting better at leveraging

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what you already have. And let me show you what

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I mean. So a manufacturing company was convinced they needed

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to buy new equipment to increase capacity they were running

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three shifts and keep up with demand. When they analyzed

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their operations, they discovered something that was really surprising to them.

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Their overall equipment effectedness, that's actual production time versus available

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time was only forty two percent and the industry standard

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was eighty five percent. They weren't running at full capacity,

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they were just they were just running inefficiently. But here's

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where it gets interesting. They found three major areas, and

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this is where the concept of operational leverage becomes so powerful. First,

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they were losing two hours per shift and change over

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time between products. Second, they were having quality issues that

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required rework. And third, their maintenance was reactive rather than preventative,

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leading to unexpected downtime, which definitely caused a ton of inefficiency.

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And so they implemented what they called the profit point analysis,

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where they mapped out every step in their operation and

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identified where time and money were being lost. Then they

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00:25:10.920 --> 00:25:15.240
created a systematic plan to address each issue. Now the

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change over time brought from two hours to thirty minutes

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00:25:18.839 --> 00:25:24.799
by simply reorganizing their process and creating standard procedures. Quality

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issues were cut in half by implementing checkpoints at critical

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stages rather than just at the end, and then they

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developed a preventive maintenance schedule that actually reduced downtime by

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seventy percent. The result was that their effective capacity increased

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by eighty five percent without binding any new equipment. Their

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profit manage improved from twelve to twenty eight percent because

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they were getting more production from the same fixed costs.

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But operational leverage isn't just for manufacturing. Let me share

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how that principle worked for a service business. So there

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was a law firm that was strungruggling with profitability despite

395
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having a full load of clients, and when they analyzed

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00:26:07.279 --> 00:26:11.640
their operations, they found that they were leaking profit in

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00:26:11.680 --> 00:26:14.920
how they were using their most expensive resource, which, of course,

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as you can imagine, was attorney time. And they implemented

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what they call the value time mapping, and for every

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activity in the firm, they asked two questions, Number one,

401
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does this require attorney expertise? And number two, what's the

402
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value to the client. Well, they discovered that attorneys were

403
00:26:35.519 --> 00:26:38.119
spending forty percent of their time on tasks that could

404
00:26:38.160 --> 00:26:42.079
be handled by power legals or automated systems. So by

405
00:26:42.119 --> 00:26:46.400
restructuring how work flowed through the firm, they were able

406
00:26:46.440 --> 00:26:50.839
to create profit centers instead of just departments. And they

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00:26:50.880 --> 00:26:55.480
developed systems that matched tasks to the appropriate skill level,

408
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automated routine documents, and created client intake processes that gathered

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better information up front. And the results were dramatic. I

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00:27:06.720 --> 00:27:09.400
mean attorney billable I was increased by twenty eight percent.

411
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It can imagine how those were and because they were

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focusing on high value work and then profit per partner

413
00:27:16.160 --> 00:27:19.480
increased by forty five percent. But also is the thing.

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Client satisfaction scores went up because work was being handled

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more efficiently at every level. Now notice I said client

416
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satisfaction scores. How did they know that? Well, they track

417
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their data. This is something we business owners never do.

418
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We never were scared about the math and the data.

419
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But it's the data that helps drive the decision making

420
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and it did so for this law firm. So here's

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a question, yep, here's a question from a listener. Can

422
00:27:50.599 --> 00:27:54.720
smaller businesses apply these same principles absolutely so. In fact,

423
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sometimes it's easier for smaller businesses because they could be

424
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more nimble. Let me give you an example of a

425
00:28:01.440 --> 00:28:06.720
small plumbing company that increased their profitability through operational leverage.

426
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So this company had four trucks on the road and

427
00:28:09.640 --> 00:28:12.319
it was struggling to keep up with demand. They thought

428
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they needed more trucks and needed to hire more plumbers,

429
00:28:17.079 --> 00:28:21.359
you know. And instead they analyzed their operation very important

430
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to do and found that they were only averaging five

431
00:28:24.680 --> 00:28:29.039
completed jobs per truck per day when similar companies were

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doing eight. So, once again they looked at their data

433
00:28:34.000 --> 00:28:37.000
and the problem was that their plumber's skill, it was

434
00:28:37.039 --> 00:28:41.039
their scheduling and routing. They implemented a simple system that

435
00:28:41.240 --> 00:28:45.519
organized jobs by geography and type. They also created a

436
00:28:45.559 --> 00:28:48.759
detailed list of what should be in each truck at

437
00:28:48.759 --> 00:28:52.839
the start of each day. These two changes increased their

438
00:28:52.880 --> 00:28:56.799
completed jobs to seven completed jobs per day. Their revenue

439
00:28:56.799 --> 00:28:59.000
went up forty percent with the same number of trucks

440
00:28:59.480 --> 00:29:02.160
and the same number of plumbers. But here's the best

441
00:29:02.160 --> 00:29:05.160
part their gross their profit. Their profit went up eighty

442
00:29:05.200 --> 00:29:07.680
five percent because all of their fixed costs stayed the

443
00:29:07.720 --> 00:29:11.920
same while they got more production from their existing resources.

444
00:29:11.960 --> 00:29:15.640
By the way, that's the beauty. That's the beautiful part

445
00:29:15.720 --> 00:29:19.599
about this. When you change operational efficiencies and make it

446
00:29:19.640 --> 00:29:22.160
more important, most of that profit falls to the bottom

447
00:29:22.160 --> 00:29:26.359
line because most of your overhead is fixed. It's the

448
00:29:26.440 --> 00:29:32.240
same to every period, to every relevant revenue range. So

449
00:29:32.319 --> 00:29:36.319
let me share another a powerful aspect of operational leverage

450
00:29:36.440 --> 00:29:41.039
that most businesses quite frankly miss completely, and I'll call

451
00:29:41.079 --> 00:29:46.680
it the capacity multiplier effect. So a physical therapy practice

452
00:29:47.319 --> 00:29:51.200
that thought they needed to add more treatment rooms to grow,

453
00:29:52.200 --> 00:29:56.319
but when they analyzed their operations using the capacity multiplier framework,

454
00:29:57.079 --> 00:30:01.079
they discovered that their existing space could forty percent more

455
00:30:01.119 --> 00:30:06.279
patients just by changing this scheduling approach. Now, they were

456
00:30:06.319 --> 00:30:10.960
scheduling all their patients on the hour, which created bottlenecks

457
00:30:11.079 --> 00:30:15.039
in their treatment rooms, but by staggering the appointments every

458
00:30:15.079 --> 00:30:18.920
twenty minutes and implementing what they called blow zones in

459
00:30:18.960 --> 00:30:22.000
their facility, they could actually serve more patients with the

460
00:30:22.039 --> 00:30:25.440
same space and staff. And the result was that their

461
00:30:25.480 --> 00:30:30.039
revenue increased by thirty five percent while their overhead stayed

462
00:30:30.039 --> 00:30:33.279
exactly the same. And that's the power of the capacity

463
00:30:33.359 --> 00:30:38.440
multiplier effect any more output from your existing resources by

464
00:30:38.559 --> 00:30:47.000
optimizing how you use them. So a couple of questions

465
00:30:47.279 --> 00:30:53.200
from listeners. First, how can a business owner identify their

466
00:30:53.279 --> 00:30:58.119
best opportunities for operational leverage. Well, I use what I

467
00:30:58.240 --> 00:31:04.079
call the resource utilization analysis. So stop by tracking how

468
00:31:04.119 --> 00:31:10.119
your most expensive resources, whether that's people, equipment, or space,

469
00:31:11.440 --> 00:31:14.240
how they're being used throughout the day, and look for

470
00:31:14.319 --> 00:31:19.240
three things. Number one idle time, number two mismatched activities,

471
00:31:19.279 --> 00:31:23.279
and number three bottlenecks. For example, a company in the

472
00:31:23.359 --> 00:31:28.039
dental industry who discovered that their most expensive resource, the dentists,

473
00:31:28.119 --> 00:31:30.720
was spending thirty percent of their time reviewing charts and

474
00:31:30.799 --> 00:31:35.839
doing paperwork, they could be delegated. So by restructuring their workflow,

475
00:31:36.160 --> 00:31:40.720
they increase procedure time by twenty five percent without working

476
00:31:40.880 --> 00:31:45.640
longer hours. And remember, the biggest opportunities often hide in

477
00:31:45.759 --> 00:31:49.319
playing sight because we're so used to doing things a

478
00:31:49.359 --> 00:31:54.920
certain way. So the other question, the second question from

479
00:31:54.960 --> 00:31:58.400
a listener, is so what's the fastest way to stop

480
00:31:58.519 --> 00:32:03.960
implementing to start implementing these principles, Well, start with what

481
00:32:04.000 --> 00:32:09.160
I call quick win analysis. Make three lists things you

482
00:32:09.200 --> 00:32:14.359
can change immediately with no investment, things that require minor

483
00:32:14.400 --> 00:32:20.000
investment or trimming, and things that need major changes, and

484
00:32:20.160 --> 00:32:23.720
focus on the first list. For instance, I had a

485
00:32:23.720 --> 00:32:28.000
manufacturing client who improved efficiency by fifteen percent in one

486
00:32:28.039 --> 00:32:32.480
week just by reorganizing their workspace. No new equipment, no

487
00:32:32.559 --> 00:32:36.160
new staff, just a smarter layout. These quick wins not

488
00:32:36.200 --> 00:32:40.000
only improve profit immediately, but they also build momentum and

489
00:32:40.160 --> 00:32:44.960
buy in for bigger changes. So before I continue this discussion,

490
00:32:44.960 --> 00:32:47.799
we're going to take a ninety second break. Hey, their

491
00:32:47.839 --> 00:32:50.519
business owners, let me ask you something. Are you tied

492
00:32:50.559 --> 00:32:54.440
of blending in with your competitors? Frustrated with slow growth

493
00:32:54.480 --> 00:32:55.519
and slim margins?

494
00:32:55.759 --> 00:32:57.160
Well, I've got news for you.

495
00:32:57.839 --> 00:33:01.359
Everything you've ever learned about growing your busin business is wrong.

496
00:33:02.240 --> 00:33:02.880
Don't worry.

497
00:33:03.319 --> 00:33:05.240
I'm here to let you in on a secret weapon,

498
00:33:05.680 --> 00:33:09.240
your position of market dominance. It's what sets you apart,

499
00:33:09.400 --> 00:33:13.200
makes you irreplaceable, and has customers lining up at your door.

500
00:33:14.200 --> 00:33:17.839
My name is Michael Barberrita from Next Step CFO. I

501
00:33:17.920 --> 00:33:21.119
know what you're thinking, sounds greg, Michael, How do I

502
00:33:21.240 --> 00:33:25.000
find my position of market dominance? Well, that's exactly why

503
00:33:25.000 --> 00:33:28.960
we've created our game changing implementation program called next Step

504
00:33:28.960 --> 00:33:31.640
to market dominance in just ninety days.

505
00:33:31.680 --> 00:33:33.240
Will guide you step by step to.

506
00:33:33.200 --> 00:33:36.720
A position of market dominance by uncovering your unique strengths

507
00:33:36.799 --> 00:33:40.440
that competitors can't touch. By crafting a message that resonates

508
00:33:40.440 --> 00:33:43.640
deeply with your ideal customer, by building a strategy that

509
00:33:43.759 --> 00:33:44.839
turns you into.

510
00:33:44.599 --> 00:33:47.400
The go to expert in your field. Now this is

511
00:33:47.440 --> 00:33:47.960
in theory.

512
00:33:48.599 --> 00:33:51.559
These are battle tested strategies that have helped businesses like

513
00:33:51.599 --> 00:33:56.079
you as double, triple, and quadruple their revenue. Don't let

514
00:33:56.119 --> 00:33:59.279
another quarter go by struggling to standout. It's time to

515
00:33:59.359 --> 00:34:04.599
dominate your market period. Go to NEXTSTEPCFO dot net forward

516
00:34:04.640 --> 00:34:08.079
slash contact. Fill out the form and in the message

517
00:34:08.079 --> 00:34:12.559
section put the word dominate or call us at seven eight.

518
00:34:12.400 --> 00:34:15.039
One three two six three A two two.

519
00:34:15.559 --> 00:34:19.239
That's next step CFO dot net forward slash Contact or

520
00:34:19.320 --> 00:34:22.719
call us at seven eight one three two six three

521
00:34:22.760 --> 00:34:26.400
A two two. Welcome back, and remember you could catch

522
00:34:26.599 --> 00:34:31.719
all of our podcasts at Powerful Business Strategies dot com.

523
00:34:32.760 --> 00:34:36.880
So in our final segment today, let's talk about what

524
00:34:37.000 --> 00:34:40.280
might be the biggest opportunity for profit improvement. And that's

525
00:34:40.280 --> 00:34:44.840
what I call profit leak prevention. See most businesses are

526
00:34:44.920 --> 00:34:48.960
losing profit every day through dozens of small little leaks

527
00:34:49.320 --> 00:34:52.079
that they don't even see. And I call this the

528
00:34:52.119 --> 00:34:56.000
profit leak principle, small consistent losses that add up to

529
00:34:56.079 --> 00:34:58.320
major impact on the bottom line. And so let me

530
00:34:58.320 --> 00:35:02.079
share a story that illustrates this. So a restaurant was

531
00:35:02.119 --> 00:35:05.920
doing great sales volume but struggling with profitability. And when

532
00:35:05.960 --> 00:35:09.039
they researched it, they found that they were losing money

533
00:35:09.199 --> 00:35:12.360
in ways that didn't show up on their regular reporting.

534
00:35:13.360 --> 00:35:17.360
So they discovered five categories of profit leaks, and I

535
00:35:17.400 --> 00:35:20.239
want everyone listening to think about these in their own businesses.

536
00:35:21.000 --> 00:35:25.320
The first was what I call process leaks. These are

537
00:35:25.360 --> 00:35:29.119
inefficient procedures that waste time and resources. Now, in the

538
00:35:29.119 --> 00:35:34.400
restaurant's case, they were prepping certain items twice daily instead

539
00:35:34.400 --> 00:35:40.639
of once because of poor communication between shifts. Second was

540
00:35:40.719 --> 00:35:47.360
pricing leaks, inconsistent pricing and undocumented discounts. See, their servers

541
00:35:47.360 --> 00:35:50.719
were offering different happy hour deals because there was no

542
00:35:51.159 --> 00:35:57.000
standardized policy there was that inconsistent there pricing. Third was

543
00:35:57.119 --> 00:36:01.159
payment leaks money lost in the payment process. They were

544
00:36:01.199 --> 00:36:04.920
paying credit card fees on the total bill, including tips,

545
00:36:05.840 --> 00:36:07.760
when they could have been when they could have had

546
00:36:07.800 --> 00:36:14.639
process tips separately at a lower rate. Fourth was purchasing leaks.

547
00:36:15.159 --> 00:36:18.440
They were buying inefficiency, so they had three different suppliers

548
00:36:18.440 --> 00:36:21.880
for paper products, all charging different prices, and no one

549
00:36:21.960 --> 00:36:28.480
was comparing the rates. Fifth people leaks inefficient use of

550
00:36:28.639 --> 00:36:32.639
staff time, so they were scheduling the same staff levels

551
00:36:32.639 --> 00:36:35.400
on let's say an Monday as they were on Friday,

552
00:36:35.760 --> 00:36:39.719
despite having half the business on Monday. So map out

553
00:36:39.760 --> 00:36:42.960
each leak based on how much profit it's costing and

554
00:36:43.039 --> 00:36:45.840
how easy it is to fix. So let me show

555
00:36:45.840 --> 00:36:48.760
you how this restaurant, how it worked for this particular restaurant.

556
00:36:48.760 --> 00:36:52.480
So the credit card fee issue was costing them twelve

557
00:36:52.519 --> 00:36:55.000
hundred dollars per month and it took one phone call

558
00:36:55.119 --> 00:36:58.199
to their process. At a fixed the scheduling issue was

559
00:36:58.239 --> 00:37:01.239
two thousand dollars per month, but require a new system

560
00:37:01.719 --> 00:37:06.840
and staff training to address. And they started with the

561
00:37:06.880 --> 00:37:10.880
credit card fees because it was high impact, low efforts

562
00:37:10.920 --> 00:37:14.199
the phone call. But here's what's really powerful about the

563
00:37:14.719 --> 00:37:18.719
profit leak prevention. The fixes are usually permanent. Once you

564
00:37:18.760 --> 00:37:21.239
fix a leak, it stays fixed for as long as

565
00:37:21.239 --> 00:37:24.079
you're maintaining good systems, And so within six months, the

566
00:37:24.079 --> 00:37:28.039
restaurant had plugged leaks that added to eighty four thousand

567
00:37:28.079 --> 00:37:32.599
to their annual profit. So let me share another example

568
00:37:32.599 --> 00:37:35.719
from a completely different industry. So an auto repair shop

569
00:37:36.400 --> 00:37:40.679
was struggling with profit margins. Their revenue was strong, but

570
00:37:40.719 --> 00:37:45.679
their profit was weak. The profit leak audit revealed something

571
00:37:45.880 --> 00:37:49.559
really really surprising, especially to them. They were losing money

572
00:37:49.559 --> 00:37:54.320
on parts markup because they hadn't updated their pricing formulas

573
00:37:54.360 --> 00:38:00.199
in three years despite supplier pricing increases. And they were

574
00:38:00.239 --> 00:38:04.000
losing money on diagnostic time because they weren't charging for

575
00:38:04.119 --> 00:38:08.239
some common tests that the competitors all charged for. But

576
00:38:08.280 --> 00:38:11.400
the biggest leak was in their warranty work. They were

577
00:38:11.440 --> 00:38:15.599
replacing entire assemblies when one component was failing and their

578
00:38:16.000 --> 00:38:22.599
part supplier would have warranteed just a failed component. Man

579
00:38:23.280 --> 00:38:28.599
question from a listener, so, how do how do you

580
00:38:28.639 --> 00:38:31.760
help businesses prevent new leaks from developing? Well, this is

581
00:38:31.800 --> 00:38:35.119
where we implement what I call a profit protection protocols.

582
00:38:35.280 --> 00:38:40.000
These are systematic checks that become part of your regular

583
00:38:40.079 --> 00:38:43.519
business rhythm. And let me share the three most important protocols.

584
00:38:44.119 --> 00:38:48.480
First is the monthly margin review checking the actual I

585
00:38:48.519 --> 00:38:50.920
know we're going to look at numbers. Again, I get

586
00:38:50.960 --> 00:38:56.039
it y'all out there. So it's called the monthly margin review,

587
00:38:57.039 --> 00:38:59.960
checking the actual gross profit margins on your top twenty

588
00:39:00.079 --> 00:39:06.480
products or services every month. This catches pricing lenks very quickly. Second,

589
00:39:07.199 --> 00:39:11.400
the quarterly process update on it, so having fresh eyes

590
00:39:11.519 --> 00:39:16.119
review your key operational processes every ninety days. This catches

591
00:39:16.239 --> 00:39:23.760
efficien efficiency leaks up before they become habits. Third is

592
00:39:24.679 --> 00:39:31.280
the systematic spend review that's analyzing every vendor relationship and

593
00:39:31.440 --> 00:39:36.280
recurring expense twice a year. This catches purchasing leaks and

594
00:39:36.440 --> 00:39:41.159
opportunities for better terms. Don't forget that. So let me

595
00:39:41.239 --> 00:39:44.719
share one more critical aspect of profit leak prevention that

596
00:39:44.840 --> 00:39:50.840
most businesses quite frankly overlook entirely. I call it hidden

597
00:39:50.960 --> 00:39:56.320
asset activation. So a wholesale distribution company that was considering

598
00:39:56.360 --> 00:39:58.920
taking out a loan to improve their cash flow, when

599
00:39:58.920 --> 00:40:02.159
they did the profit profit leak audit, they discovered that

600
00:40:02.159 --> 00:40:05.119
they were sitting on twenty thousand dollars in slow moving

601
00:40:05.159 --> 00:40:09.280
inventory that was actually costing them money to keep. So

602
00:40:09.400 --> 00:40:12.440
instead of taking out a loan, they created what they

603
00:40:12.480 --> 00:40:16.320
called a strategic liquidation program where they identified which items

604
00:40:16.360 --> 00:40:19.679
were unlikely to sell at full price, and created three

605
00:40:19.719 --> 00:40:22.960
tiers of discounting based on how long the items had

606
00:40:22.960 --> 00:40:26.079
been in inventory. But here's the key. They didn't just

607
00:40:26.159 --> 00:40:31.519
slash prices across the board. So this is something business

608
00:40:31.519 --> 00:40:34.400
owners hate to do. They hate to admit that they're

609
00:40:34.440 --> 00:40:37.559
sitting on dogs in their inventory, stuff that doesn't sell.

610
00:40:39.079 --> 00:40:43.119
I tell this to everybody. Make sure that you price

611
00:40:43.239 --> 00:40:46.559
everything to sell. I don't care what it is, because

612
00:40:46.679 --> 00:40:49.440
if it turns into cash. When it turns into cash,

613
00:40:49.639 --> 00:40:53.800
you're able to reinvest in good inventory that sells. That's profitable.

614
00:40:54.360 --> 00:41:00.440
That's the game plan. That's strategic. So this company attacked

615
00:41:00.480 --> 00:41:03.880
their best customers first and offered them exclusive access to

616
00:41:03.920 --> 00:41:06.440
these deals. That's a great idea. By the way, not

617
00:41:06.480 --> 00:41:08.719
only do this, you know, when you when you have

618
00:41:08.840 --> 00:41:12.639
inventory to move, call your best customers, okay, home, get

619
00:41:12.639 --> 00:41:16.519
that thing, get that get that inventory turned into cash,

620
00:41:16.559 --> 00:41:19.920
And not only did this move the inventory, but also

621
00:41:19.960 --> 00:41:23.320
strengthen the relationships with key customers. They convert two hundred

622
00:41:23.360 --> 00:41:26.639
thousand of stagnant inventory into cash within ninety days. That's

623
00:41:26.679 --> 00:41:28.440
the way to do it. And several of their best

624
00:41:28.440 --> 00:41:32.679
customers actually increased their regular ordering because they appreciated getting

625
00:41:32.679 --> 00:41:36.360
first access to the deals. And the lesson here is

626
00:41:36.400 --> 00:41:40.239
that profit leaks often disguise themselves as assets on your

627
00:41:40.280 --> 00:41:43.039
balance sheet. You have to look weird. You have to

628
00:41:43.079 --> 00:41:46.559
know where to look and how to convert these hidden drains,

629
00:41:47.679 --> 00:41:51.599
prepaid expenses, inventory, these are these are hot, these are

630
00:41:51.679 --> 00:41:56.239
this is cash that's hiding in your balance sheet. So

631
00:41:57.000 --> 00:42:02.719
two more questions from listeners. How quickly can a business

632
00:42:02.760 --> 00:42:07.400
expect to see results from plugging profit leads? Well, you

633
00:42:07.440 --> 00:42:10.400
can typically see first results within thirty days if you

634
00:42:10.440 --> 00:42:14.519
follow that that framework, that fast fixed framework. You know,

635
00:42:14.559 --> 00:42:17.480
you start with leaks that require no approval, no investment,

636
00:42:17.599 --> 00:42:20.840
no extensive training to fix. You know, like the restaurant

637
00:42:20.880 --> 00:42:22.639
did with the credit card company. It was one call

638
00:42:22.800 --> 00:42:26.519
that was seconds. So every business has at least three

639
00:42:26.559 --> 00:42:29.239
to five of those. And then a retail store that

640
00:42:29.280 --> 00:42:32.039
had had their credit card processing leak in one day.

641
00:42:32.159 --> 00:42:35.559
I mentioned that that was saving eight hundred dollars a month.

642
00:42:36.480 --> 00:42:39.559
They fixed their shipping rate leak in one week, saving

643
00:42:39.599 --> 00:42:42.559
another twelve hundred dollars per month. So don't wait for

644
00:42:42.599 --> 00:42:45.239
the perfect solution to all the leaks. That was the

645
00:42:45.280 --> 00:42:49.599
ones that you can fix today. Here's the other question,

646
00:42:50.519 --> 00:42:54.800
what's the common what's the most common resistance you see

647
00:42:54.840 --> 00:42:59.559
from businesses when implementing these changes. Well, the biggest resistance

648
00:42:59.639 --> 00:43:02.119
comes from what I call the we've done it, We've

649
00:43:02.159 --> 00:43:07.079
always done it this way syndrome, where people get comfortable

650
00:43:07.119 --> 00:43:11.559
with current processes even if they're inefficient. And so the

651
00:43:11.639 --> 00:43:15.079
key is to involve your whole team in identifying and

652
00:43:15.119 --> 00:43:18.159
fixing leaks at be prepared to take a little criticism

653
00:43:19.559 --> 00:43:21.559
and share the wins with them. By the way, when

654
00:43:21.599 --> 00:43:25.800
the restaurant fixed their scheduling leak, they shared twenty five

655
00:43:25.800 --> 00:43:28.480
percent of the savings with their staff through a bonus program.

656
00:43:28.519 --> 00:43:31.760
That was a great idea, and suddenly everyone became interested

657
00:43:32.079 --> 00:43:36.039
in finding more leaks to fix. So before I continue

658
00:43:36.039 --> 00:43:39.360
this discussion, we're going to take a ninety second break. Hey,

659
00:43:39.360 --> 00:43:41.840
their business owners, let me ask you something. Are you

660
00:43:42.000 --> 00:43:45.719
tied of blending in with your competitors, frustrated with slow

661
00:43:45.800 --> 00:43:47.280
growth and slim margins.

662
00:43:47.519 --> 00:43:48.880
Well, I've got news for you.

663
00:43:49.599 --> 00:43:53.079
Everything you've ever learned about growing your business is wrong.

664
00:43:54.000 --> 00:43:54.639
Don't worry.

665
00:43:55.079 --> 00:43:57.000
I'm here to let you in on a secret weapon.

666
00:43:57.440 --> 00:44:01.000
Your position of market dominance. It's what sets you apart,

667
00:44:01.119 --> 00:44:04.920
makes you irreplaceable and has customers lining up at your door.

668
00:44:05.960 --> 00:44:09.559
My name is Michael Barberrita from next Step CFO. I

669
00:44:09.679 --> 00:44:12.880
know what you're thinking. Sounds great, Michael, How do I

670
00:44:12.960 --> 00:44:16.719
find my position of market dominance? Well, that's exactly why

671
00:44:16.760 --> 00:44:20.679
we've created our game changing implementation program called next Step

672
00:44:20.719 --> 00:44:23.960
to Market Dominance. In just ninety days, we'll guide you

673
00:44:24.000 --> 00:44:26.800
step by step to a position of market dominance by

674
00:44:26.840 --> 00:44:30.800
uncovering your unique strengths that competitors can't touch. By crafting

675
00:44:30.800 --> 00:44:34.199
a message that resonates deeply with your ideal customer, by

676
00:44:34.239 --> 00:44:36.599
building a strategy that turns you into.

677
00:44:36.360 --> 00:44:39.159
The go to expert in your field. Now this is

678
00:44:39.199 --> 00:44:39.679
in theory.

679
00:44:40.320 --> 00:44:43.320
These are battle tested strategies that have helped businesses like

680
00:44:43.360 --> 00:44:47.840
you as double, triple, and quadruple their revenue. Don't let

681
00:44:47.840 --> 00:44:51.039
another quarter go by struggling to standout. It's time to

682
00:44:51.119 --> 00:44:56.360
dominate your market period. Go to NEXTSTEPCFO dot net forward

683
00:44:56.360 --> 00:44:59.760
slash contact. Fill out the form and in the message

684
00:44:59.760 --> 00:45:03.880
section put the word dominate or call us at seven

685
00:45:03.920 --> 00:45:07.519
eight one three two six three A two two. That's

686
00:45:07.599 --> 00:45:11.519
next STEPCFO dot net forward slash Contact or call us

687
00:45:11.599 --> 00:45:15.119
at seven eight one three two six three eight two two.

688
00:45:16.119 --> 00:45:18.599
Welcome back, And as we wrap up today's show on

689
00:45:18.639 --> 00:45:22.000
the profit growth formula, let's put together a specific action

690
00:45:22.119 --> 00:45:26.159
plan that you could start implementing tomorrow morning. First, let's

691
00:45:26.159 --> 00:45:30.239
talk about strategic pricing. Your immediate action step is to

692
00:45:30.280 --> 00:45:33.960
analyze your top five products or services and for each one,

693
00:45:34.280 --> 00:45:37.079
write down what problem it solves for your customer and

694
00:45:37.119 --> 00:45:40.639
what solution is worth to them, what that solution is

695
00:45:40.679 --> 00:45:43.280
worth to them, And if you're not charging at least

696
00:45:43.280 --> 00:45:48.119
ten percent of that value, you're probably underpriced. Remember our

697
00:45:48.119 --> 00:45:50.360
the IT company example, they were charging one undred twenty

698
00:45:50.400 --> 00:45:53.320
five dollars an hour but delivering five thousand in monthly value.

699
00:45:54.000 --> 00:45:57.480
Don't follow into that trap. Your pricing should reflect your value,

700
00:45:57.960 --> 00:46:02.519
not just your cost. Second, for operational leverage, start with

701
00:46:02.599 --> 00:46:06.039
what I call the efficiency audit. For one week, crack

702
00:46:06.360 --> 00:46:10.800
every activity that takes longer than thirty minutes and categorize

703
00:46:10.840 --> 00:46:14.400
each activity as either value adding or non value adding.

704
00:46:14.719 --> 00:46:18.920
And that's from the customer's perspective, and you'll be shocked

705
00:46:18.920 --> 00:46:21.800
at how much time goes to activities customers don't value

706
00:46:21.920 --> 00:46:28.079
or notice. Third is for profitly prevention. Implement the daily

707
00:46:28.199 --> 00:46:31.599
drip check every day, look at one aspect of your

708
00:46:31.599 --> 00:46:35.000
business and ask is this making us money or costing

709
00:46:35.079 --> 00:46:38.920
us money? Not? With your payment processing and then you're purchasing,

710
00:46:39.039 --> 00:46:43.400
and then your operational processes. And for business owners feeling

711
00:46:43.400 --> 00:46:46.199
overwhelmed by all this that with what I call the

712
00:46:46.280 --> 00:46:49.519
power hour, take one hour tomorrow morning and do three things.

713
00:46:49.840 --> 00:46:53.840
Number one, pick your most popular product or service and

714
00:46:53.920 --> 00:46:56.960
calculate its true profitability. That's right, get into the numbers

715
00:46:56.960 --> 00:47:00.679
a little bit, not just revenue minus is cost, but

716
00:47:00.840 --> 00:47:03.960
all costs associated with delivering it. Really think about that

717
00:47:04.920 --> 00:47:08.800
every and then second. Every list every step involved in

718
00:47:08.880 --> 00:47:12.719
delivering that product of service and mark which steps to

719
00:47:12.880 --> 00:47:17.679
be eliminated, automated, or delegated, so that's eliminated, automated, or delegated.

720
00:47:18.000 --> 00:47:21.559
And review your last month's expenses and circle any recurring

721
00:47:21.679 --> 00:47:25.039
charges that you have. I'm sorry that you haven't reviewed

722
00:47:25.039 --> 00:47:28.039
in the past six months. So just doing these three

723
00:47:28.079 --> 00:47:33.599
things will usually reveal at least one significant opportunity for

724
00:47:33.719 --> 00:47:39.199
profit improvement. Remember, increasing profit isn't about working harder, it's

725
00:47:39.239 --> 00:47:43.800
about working far, and it's about making sure that you

726
00:47:43.960 --> 00:47:47.400
keep more of every dollar that you generate. The strategies

727
00:47:47.400 --> 00:47:50.920
we discussed today on a just theory. They're proven approaches

728
00:47:51.320 --> 00:47:56.639
that have helped hundreds of businesses dramatically improve their bottom line.

729
00:47:58.480 --> 00:48:00.519
I'd like to talk about one thing that we do

730
00:48:02.119 --> 00:48:05.119
at Next Step CFO for our clients that gives the

731
00:48:05.280 --> 00:48:11.280
client more confidence in increasing their prices. So we have

732
00:48:11.320 --> 00:48:15.719
a tool that will tell you how many customers you

733
00:48:16.199 --> 00:48:18.119
that when you do a price increase, and you can

734
00:48:18.199 --> 00:48:21.639
tell us how much of a price increase, how many

735
00:48:21.679 --> 00:48:25.920
customers you can afford to lose and still make the

736
00:48:25.960 --> 00:48:29.960
profit that you were making before the price increase. And

737
00:48:30.000 --> 00:48:35.320
the reason why it gives business owners confidence is virtually

738
00:48:35.440 --> 00:48:38.559
not every time, but virtually every time that I tell

739
00:48:38.599 --> 00:48:41.760
them how many customers they can afford to lose, they

740
00:48:41.800 --> 00:48:44.159
say that. They say, I'm not going to lose that

741
00:48:44.199 --> 00:48:48.360
many customers, and that gives a confidence to have the

742
00:48:48.440 --> 00:48:53.039
price increase. To get a copy of the book Powerful

743
00:48:53.079 --> 00:48:56.920
Business Strategies, simply go to our website www dot next

744
00:48:56.960 --> 00:49:01.199
Step CFO dot net. It's totally compliment metry and until

745
00:49:01.239 --> 00:49:05.119
next Monday at noon Eastern time. But chukey obio. My

746
00:49:05.239 --> 00:49:09.159
name is Michael Barbarita, and remember, don't keep doing what

747
00:49:09.280 --> 00:49:11.199
your competition is doing.

748
00:49:12.800 --> 00:49:15.840
You have been listening to powerful business strategies, finding out

749
00:49:15.920 --> 00:49:19.559
that everything you ever learned about growing your business is wrong.

750
00:49:19.840 --> 00:49:23.039
Tune in next week and every week at noon Eastern

751
00:49:23.119 --> 00:49:26.559
time on W four CY Radio with your host Michael

752
00:49:26.599 --> 00:49:31.239
Barbarita of NeXTSTEP CFO and moderator Chukey Obio